CAS GE 100 Lecture Notes - Lecture 11: Resource Depletion, Gross National Income, Nylon
21 Apr 2016
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Document Summary
Economy: a system in which goods and services are produced and distributed among people to satisfy needs and wants: has two functions: the production and the consumption of goods and services. Goods: things that people find useful such as cars, computers, and chocolate cakes. Services: flows of benefits over time, such as watching a movie, being advised by a financial planner, being treated for a sprained ankle in a hospital, or being educated at a university. Production: the transformation of inputs into goods and services: key inputs into production (factors of production): Capital- (a traditional view) machinery, factories, equipment, tools, and transportation and communication networks. Technology: the combination of labor and capital use to produce a good. Firms: the entities that produce goods and services. Utility: the satisfaction that people get from these goods and services is known. Profit: the difference between revenues and costs. Economics will typically not take environment into account.
